DS
UC-NRLF
SB 53 755
00in
COTT
VISCOUNT MOTONO
DR. PAUL S. REINSCH
BARON SHIBUSAWA
LINDSAY RUSSELL
JUDGE E. H. GARY
JULEAN H. ARNOLD
WILLIAM H. WILLIAMS
W. F. CAREY
ANSON W. BURCHARD
66 W BELIEVE in and have
^ advocated co-operation,
between individuals, corporations
and nations as distinguished from
hostility and bitterness;an ear-
nest effort to work together and
to help one another;to live and
to let live;
to act as business
friends rather than as business
enemies;to compete, but openly,
fairly, considerately. In our
country, big business rivals have
acted in accordance with these
principles and with financial suc-
cess to all concerned." -Judge
Elbert H. Gary.
THE ERA OF THE PACIFIC.
An Address by Viscount Motono, Foreign Minister of
Japan at the America-Japan Society Banquet, May H*
In a strong, frank address, delivered before the
America-Japan Society at its inaugural banquet, May11, Viscount Motono, Foreign Minister of Japan,
presented the problem of American-Japanese relations
in a light that gave to this question added significance.
His address follows :
"It seems to me that there are few questions of
such vital moment to the future welfare of mankind as
that concerning the relations of Japan and the United
States," said the Foreign Minister. " The Era of the
Pacific is already dawning, and it promises to surpass,
in the vastness of the sphere of its activities and influ-
ence and in the profundity of its meaning, that of the
Mediterranean as well as that of the Atlantic. At last,
all the forces, old and new, of the East and of the West
will meet. Will they unite or will they clash ? *" This
question is to-day challenging an answer from every
serious and thinking man the world over.
" Without meaning at all to ignore other great
factors, I may say that it lies, in a large measure, in
the power of the United States and Japan to deter-
mine the answer to this question ; and, on the answer,
for which they will be held largely responsible, the
future happiness and progress of the world will depend.
Viewed in this bearing, the relations between Japan
and the United states become a matter of supreme
importance not only to the two nations themselves but
to humanity in general. With the awful responsibility
they owe to humankind, will Japan and the United
States work hand in hand or will they turn their backs
no each other? I am hopeful that our two nations
36195?
will always find some essential principles of human-kind
on which to base abiding relations of mutual trust and
confidence." In the meantime, it is important that we should
know each other. Knowledge is the only foundation
of true understanding and an enduring peace amongnations. In this regard, I welcome most heartily the
founding of the America-Japan Society, and I am con-
fident, Mr. President, that the Society, under yourable presidency and under the wise guidance of the
other officers associated with you, will form yet
another strong link across the Pacific and will helpthe two nations in making long strides toward a
complete understanding and the firm friendship. I join
His Excellency Count Terauchi in the congratulations
so ably and fitly expressed."
THE ATTRACTION OF CHINA.
An Address by Dr Paul Reinsch Before the American
Association of Peking, May H*
Dr. Reinsch said that they were all very happy to
welcome in their midst fellow-citizens from the United
States, some of whom were directly interested in Chinese
affairs. Chinese business methods were only one degree
less confusing than Chinese politics. The Chinese
business sense was admirable in transactions between
man and man, but it rather tended to lose itself in the
air where big corporation finance was concerned.
Chinese were apt to take credit as an opportunity of
getting money and not ability to perform. A year agoa man came to him and said that he had discovered a
solution of the problem of Chinese finance. He was
not in authority himself but said that he knew a manwho was in authority. He was asked to unfold his
scheme, whereupon he inquired whether it was possible
to buy silver direct from the United States, which would
effect such a saving by dispensing with the profits of
middlemen and banks. The man was informed that
after all, the saving would not be so enormous. The
man's ardour was somewhat cooled but he said he
would still do it." How much silver would you buy ?
"
asked the speaker."Oh, $ 200,000,000," replied the
man. " How are you going to pay for it ?"
he was
asked."In Treasury notes," he replied.
" But they
would never be accepted," he was told." Why not ?
"
the man asked. "They are perfectly good. China has
never once in her history defaulted. Treasury notes
are as good as gold."" But the miners cannot accept
them," it was pointed out." Would it be better,
perhaps," continued the man,"to have the Treasury
notes secured ?" "
Yes, it might be so considered," the
speaker told him." What security do you propose ?
"
" You know the great treasures in our National Museum.
We can pledge them as security."" You mustn't do
that," said the speaker."
It is possible that you might
not be able to pay and then the treasures will be taken
away."" That's why we want to do it ! You Ameri-
cans are our friends and we know you would never do
it !
"(Laughter.)
The speaker went on to say that although that
particular man was inexperienced, there ware many men
in authority who were unable to distinguish genuine
security from security that was unacceptable. When an
American financier came across such a type of man, he
was apt to be discouraged, because he was given a fair
run for his money, found the man he was dealing with
full of shrewd business acumen although some of his
ideas were nebulous. It was no child's play to do
business with that type of man. There was no doubt that
some exceedingly foolish contracts had been entered into
relative to railways, harbour improvements and electric
light works that belonged to others. (Laughter).
When Americans came face to face with that kind of
psychology, they were apt to be discouraged, but from
another point of view, the field was a wide one. At
the risk of appearing to indulge in self-adulation, the
speaker declared that Americans had the greatest ex-
perience in the field of business and alluded to elements
of new saving, producing and credit systems. It was
sometimes said that China was no place for the invest-
ment of American capital and that South America
furnished stronger attractions for American capital.
But it could not be denied that Americans were taking
an increasing interest in China. Two years ago, the
Inspector-General of the Chinese Maritime Customs
informed him that there were two or three vacancies in
the Customs Service and that applications from Ameri-
cans would be welcome. He communicated with the
United States and very soon the Inspector-General was
flooded with stacks of applications from young Ameri-
cans for the vacant posts. The Inspector-General's hair
stood on end. He came to him and said: "Whatshall we do ?
" The flood of applications fairly swampedhim and it took one clerk to deal with the applications.
Here were college-bred American young men ready for
the world who were anxious to come to China. That
was but a single instance. More and more young men
were being attracted to China. Regarding the greater
qestion of American finance, the measure of business
scope remained to be seen. Regarding South America
as a field for the investment of American capital, there
was this to be remembered that while South America
was not to be disdained, they were apt to be disap-
pointed, as that country was not developed and it had
not the consuming population of China. For that reason
he believed that China would occupy a very important
place in the minds of American capitalists and business
men. As far back as 1786, the first Consul ever
appointed to China was an American and as early as
the year 1 800 they had an Asiatic Bank in the United
States. In conclusion, His Excellency said that every
representative of American interests who came to China
was on the right track.
THE JAPAN SOCIETY'S WORK.
The Views of Baron Shibwsawa, President of the
Advisory Committee*
As president of the advisory committee of the
Japan Society of New York, Baron Shibusawa made
an address at the banquet given in Tokyo on April 20
in honor of Mr. Lindsay Russell, president of the
society. Baron Shibusawa's remarks were witty and
yet most expressive of appreciation for the work ac-
complished by Mr. Russell in the United States. Hereferred to the California question as an unfortunate
incident which time would solve with a more correct
understanding. The large questions were more related
to the attitude of the people in the larger cities, NewYork, Chicago, Philadelphia and elsewhere. Baron
Shibusawa spoke without preparation, for the subject
was one near to his heart and to which he had devoted
himself. In referring to co-operation he said he realized
when in New York several years ago that the wealth of
America would in time seek an outlet in the Orient. Hefeared at that time he might be misunderstood. Since
then Judge Gary has visited Japan and returned to
America and has endorsed the idea which he suggested
years before, and which is now on the eve of practical
realization. A new stage in the relationship between
the two countries has been opened, and to Mr. Lindsay
Russell and his invaluable and indefatigable work, the
greatest share of credit must be given.
Baron Shibusawa spoke of a conversation he had
with President Wilson at Washington when the Presi-
dent, in referring to him, said :
" The footsteps of
travelers such as you obliterate the boundary lines
between nations." The Baron said he could now return
this compliment to Mr, Lindsay Russell, with the hope
that any stones remaining in the path would be smooth-
ed out through the work so well done by Mr. Russell.
As the guest of the .evening was leaving for China
on the morrow this dinner must be taken as a " wel-
come," and a "farewell
"dinner would not be given
until after Mr. Russell's return from China. Speaking
of co-operation, Baron Shibusawa said the interests of
Japan and America in the Orient will be close as
years go by, not for exploitation of China but to help
in the great work of assisting China to develop herself.
THE CASE FOR CO-OPERATION.
An Address by Mr. Lindsay Russell, President of the
Japan Society of New York.
01
Mr. Lindsay Russell, president of the Japan
Society of New York, made the following address at
a dinner tendered in his honor by the Advisory
Council of that organization in Tokyo :
Mr. Lindsay Russell responded as follows :
"I cannot allow myself to accept as personal all
of your tributes and kindly expressions, but shall
assume that they are intended for me in a sense as the
humble medium through which you are conveying to
my co-workers and colleagues in New York, your
appreciation and approval of their earnest endeavors
for a cordial, close and continuons relationship between
Japan and the United States.
"I pressume I should say something this evening
about the constructive work of the Japan Society. Its
membership, when I was here five years ago, was
about five hundred. It is now more than 1,100. Of
these over a thousand are Americans, scattered
throughout the United States and including every pro-
fession and vocation. Its income last year was 52,000
yen. We have a very influential Board of Directors
representative of business and finance. There are three
Japanese on the Board well known to you, Mr. Arai,
Dr. Takamine and Mr. Ichinomiya."
It has been the privilege of the Society to welcome
and entertain many of the distinguished Japanese whohave visited the United States during the past ten years.
It has conducted a nation-wide educational campaign to
make our countries better acquainted and has published
many books. It circulates a monthly news bulletin
and also a trade bulletin. The Society encourages
10
travel to Japan, and Americans who come here generallyreturn as friends of Japan and help to create a better
understanding. We have recently had the passenger
agents of all the great trans-continental railways and
Pacific steamship companies in conference in New York,with the view of working out a plan of co-operationin encouraging travel to the Orient. One idea is to
adopt a phrase or slogan such as" The Orient calls
you. Visit Japan, China and Hawaii." All of the
companies are to be asked to print this slogan in all
their travel literature, so that millions of persons will
read it over and over again. The idea will thus become
nationalized and popularized. Mr. Herbert S. Houston,
one of the proprietors of the World's Work, and presi-
dent of the Advertising Club of America, is a director
of the Japan Society and chairman of this committee." We welcome the organization in Tokyo of the
America-Japan Society, which you have formed re-
cently under the presidency of Viscount Kaneko. If
this organization and the Japan Society of New York
are kept in energetic co-operation through frequent
exchange of visits of officers and ideas, efficient and im-
portant work can be accomplished. We will at once
form in New York a committee of three on co-opera-
tion composed of forward thinking men, of constructive
minds, and I hope that a similar committee will be
formed here. Such a committee in time will become
very efficient and may influence the policy of financiers,
business men and even our respective governments.
Thus public opinion would be shaped by practical men
rather than by international theorists or muckrakers, the
sale of whose articles and whose living depends uponthe number of startling and sensational conjectures
which they can devise. We can no longer depend
entirely on conventional methods in strengthening
international ties. We should have master minds in
both Societies. The problem is how to get them to
give the time and attention to organizing methods of
international co-operation." A vital problem to which the committees might
immediately address themselves is that of cleaner
publicity, more accurate information, better communi-
cation, with reasonable cable tolls, all of which is the
key to a better understanding, as well as commercial
progress. The wireless telegraph is destined to shortly
energize the Far East and awaken China. Soon
there will be no East or no West. The magic wand
of Marconi is making the world one vast whispering
gallery."During the past three years we have had in
view the development of a Japan-America Chamber of
Commerce with the object of encouraging trade, travel
and the investment of American capital in the Orient.
Let me urge upon my friends here the importance of
their co-operation. In this connection allow me to ex-
press the hope that China will see the importance of
improving her status in the United States, and I see no
more effective way it can be done than in co-operation
with Japan. This is the age of co-operation and
conciliation. China would do well to follow the advice
of that master in the American business world, Judge
Gary. To quote his words : "I believe in and
have advocated co-operation, between individuals, co-
operations and nations as distinguished from hostility
and bitterness;an earnest effort to live and let live
;
to act as business friends rather than as business
12
enemies;to compete, but openly, fairly, considerately."
China would do well to cultivate the friendship of
Japan. It would serve to encourage a freer flow of
American capital into her territory."Every traveller to Japan usually visits China,
every merchant doing business with Japan is likely
also to deal with China, the very ships that carry
merchandise between the United States and Japan also
serve China. Japanese activities and enterprise are
taking millions of yen to China. In fact, from no
matter what angle the situation be viewed, the keynoteis co-operation. But instead of this, would-be friends
of China are endeavoring to disturb the good relations
between the United States and Japan in the supposedinterest of China and by an ill-advised propaganda are
weakening China's credit in our financial world."Broadly speaking, Americans who have any
interest in the Far East at all are equally interested in
China and Japan. It would be to the interest of
Japan and China, as well as the United States, if a
Japan-China Bureau were established in New York,
managed for the joint interest of these countries.
However divergent the interests of Japan and China in
the Orient may be, they are almost identical as respects
the benefits to be derived from contact with the United
States. Let me mention the community of interests
upon which China's progress and to some extent
Japan's material prosperity depends : capital for invest-
ment, increase of trade and travel, improved trans-
portation, lower cable tolls, funds for medical research,
hospital and educational work." Each country is striving to express and interpret
itself to the outside world in its own way. We have
13
in New York for instance the Japan Society and the
China Society, the American-Asiatic Association, the
Asiatic Institute, the East and West News Bureau,
the Far East Bureau and many others, operating with
varying degrees of success. Magazines and newspapers
devoted to the Far East come and go in rapid succes-
sion. It would seem to be far wiser and more practical
if all of these activities were co-ordinated and workingin co-operation."If I could bring out one message to you, if I could
render Japan but one service, it would be to impress
on your bankers and business men in this, the hour of
your greatest prosperity, that you look to the future
and prepare now for the economic struggle that is to
come. I do not presume to offer advice regarding
your internal affairs, but as respects your status in the
United States, concerning which I have given thought
for many years, I may perhaps speak. Let me suggest
that you make prompt endeavor to impress on the
American mind your economic development and finan-
cial strength, your dominant position in the Far East,
your policy toward China, that you do not adopt dryand tedious statistical methods, but that you consult
advertising experts such as are employed by the NewYork banks and railways.
"I would especially call your attention to the
advertising policy of the American Telephone and
Telegraph Company and the Union Pacific Railway,each of which is spending fabulous sums, not with the
idea of selling anything, but for the purpose of nation-
alizing an idea. Beware of false press agents and fake
advertising agents. They are the parasites of the busi-
ness world. Some time ago the sugar plantations in
14
Hawaii were being damaged by rats. Under expert
advice the mongoose was brought to Hawaii. After
the mongoose exterminated the rats, he set in to destroy
the sugar cane and now they are importing a special
tick which it is said will destroy the mongoose. I
wonder if Dr. Noguchi and Dr. Takamine, your great
discoverers in medicine and chemistry, cannot discover
something that will destroy the vermin that infests
international intercourse."In conclusion let me thank you for all that you
are doing toward a better understanding between the
United States and Japan. Baron Shibusawa is a great
leader in this field, as he has been for years in that of
industry. His visits to the United States have created
a lasting impression. The passing of your Red Cross
contingent through the United States on its mission of
mercy to England was one of those characteristic
manifestations of the Japanese heart that awakened
our imagination and touched the well springs of our
kindlier emotion. And now you come to us with your
usual thoughtful kindness in an hour when we mourn
the loss of our late Ambassador and offer a warship
to transport the remains to the United States. I do
not speak for my government, but I am sure that I
voice the sentiment of my people when I say that your
kindly national sympathy, as you thus express it to a
bereaved family and friends and also to their govern-
ment and nation, is the" one touch of nature which
makes the whole would kin."
CHINA'S POSSIBILITIES.
Extracts From Addresses by Mr. Julean H. Arnold,
Commercial Attache to the American Legation in Peking :
China has an area fifty times that of Japan, a
population eight times greater, a wealth of natural
resources several hundredfold as large, and a people
with all the potential capacity of their island neighbors.
Its foreign trade in the past thirty years has
advanced from eighty to four hundred millions of dollars
gold. It should be many times greater.
Though it is the largest cotton yarn market in
the word, China has only one million modern spindles,
against two and a half times that number for Japan,
thirty-two times that number for the United States and
fifty for England.
It has thirty to forty modern mills flour, oil, rice,
cotton match factories, arsenals, shipbuilding works,
blast furnaces, electric lighting plants. It should have
hundreds.
With a wealth of coal deposits as great as those of
the United States, China is to-day still importing coal
from Japan.
With an area, including Mongolia, Thibet and
Chinese Turkestan, one-third greater than that of the
United States, it has six thousand miles of railways to
handle her transportation needs and to connect her with
world markets, against 250,000 in the United States.
She has cities of more than one hundred thousand
population each where the Standard Oil Company's kero-
sene lamps are the greatest luxury in lighting facilities,
where there exist no running water supply, no sewer system,
no wheeled vehicles, no telephones, and even no movies.
She has no water generated power plants, although
the country abounds in waterways.
16
JAPAN'S ACHIEVEMENTS.
Extracts from Mr. Arnold's Addresses.
Japan's flag, scarcely known in Pacific waters thirty
years ago, is to-day carried on two-thirds of the number
of ships in the Pacific trade.
Its ships are in every ocean on the face of the
earth,
Its shipyards are building four hundred thousand
tons of additional sea-going tonnage.
Its foreign trade of a little over one hundred
million dollars thirty years ago is to-day ten times
that amount.
Thirty years ago its industries were of the crude,
household sort; to-day over a million people are em-
ployed in modern factories.
It has established its credit with the world to the
extent of nearly a billion and a half dollars, gold, as
measured in actual foreign loans.
Having a modern army and navy, Japan is a first
class power.
Its manufactured products, almost unknown thirty
years ago, are to-day in nearly all the markets of the
world.
Its children attending modern schools have a larger
daily average attendance than the children of manywestern countries.
It has lowered its death rate by modern sanitation.
In the past ten years increase of population has
advanced from 1.02 to 1.06 to the hundred.
THE TRADE OF ASIA.
An Interview with Mr* William H, Williams, Vice-
President of Gaston, Williams and Wigmore,in "Asia," for April*
" The United States wishes to develop trade rela-
tions with China there is only one way to do it. The
United States cannot expect to sell goods to China in
any big way, with the possible exception of those cor-
porations which are powerful enough to have their own
organizations, unless our Government stands firmly and
solidly behind the investment of American capital. It is
hopeless to expect a general business to be built upwithout investment. If you will analyze the figures of
our commerce with China, which looks substantial and
growing, and if you will take out our exports of Standard
Oil, you will have very little left. Business cannot be
developed with the Orient by small traders, based on
propaganda and talk of the wonderful possibilities for
American enterprise in the Far East and on the goodintentions of earnest citizens who regard the building
up of commerce with China as the simple matter of
selling the Chinese merchant something and buying
something from him in return.
JAPAN'S AMBITION AND AMERICA'SATTITUDE
"Japan is situated geographically in such a way
that China is her natural field for trade expansion.
She has shown the intelligence, foresight and vigor
which entitle her to a large share of that trade. She
is determined to have it. Hand in hand with this
determination she has developed a merchant marine
and a spirit for foreign enterprise which fit her eminently
well to take care of it. She is an island empire and
18
is developing in much the same way and with muchthe same basic power as England developed.
"I think that to be an island is one of the elements
of tremendous national strength. By force of necessity,
such a country's people are compelled to find newfields outside their land. They take to shipping and
to foreign trading and these develop characteristics of
national strength, both material and moral, which go to
make great nations. Such trade activities require and
beget a spirit of enterprise and daring. England has
it, Japan has it, and in the same sense Denmark, thoughnot quite an island, has much of it. We had much of
it in the early days when we had to trade abroad."
I believe that Japan's attitude and policy with
respect to China is exactly correct so far as Japan is
concerned. If we were Japan I should want us to have
the same attitude. Japan sees in China her greatest
field for trade and material advantage. She is going
to develop that trade to her own advantage. We in
her place should want to do the same. As it is, we
have advocated the'
open door'
in China in order to
benefit our own trade. England is looking out for
herself. I do not blame Japan in her attitude, but feel
that it is the natural one for her to take. If I am in
business and my competitor has a customer with whomI should trade, though I may be on good terms with
my competitor I am going to do all in my power to
get as much of the trade of that customer for my firm
as I can. I should not be carrying out my obligation
if I did not.
"If, therefore, Japan has undoubted right to a large
share of the trade with China by virtue of her position,
her trading ability, and what is more, perhaps, the
19
strength of her government in standing firmly back of
a decisive foreign policy, it is up to us to examine this
attitude and her rights in relation to our own.
CHINESE-JAPANESE-AMERICAN
CO-OPERATION IN CHINA.
"I know that Japan, not once but several times,
has approached American capital with specific proposi-
tions for a definite plan of co-operation for developmentin China. Her financiers have urged her ability to
afford strong Government protection back of private
investment as a definite reason why American capital
should join hands with Japanese in this work. I am
willing to say to anybody that in order to accomplish
the development of China during our time, I would
have Americans enter into such a plan with the
Japanese on a basis of fifty- fiity of our share of an
enterprise entered into with the Chinese as the other
shareholders. In all enterprises of American and
Japanese capital in China, the Chinese must be partners." American enterprise abroad has never received
adequate protection from the United States Government.
It can be fairly stated that during our lifetime we
shall not see the day when the Chinese will have their
Government in such stabilized order that the foreign
investor will be willing to take the risk of placing his
money in natural resource development there without
the guarantee of some stronger government that his
money will be safe. I say this in entire friendliness
to the Chinese and in the knowledge that China is
daily making large progress. Her affairs, political and
industrial, are moving ahead.
20
" But it is not a future condition that the American
invester can afford to deal with now. He must deal
with the fact. The fact is that he has not the con-
fidence in the power of the Chinese Government,
because of revolution, local disturbances, disintegration
of central power, disorganized taxation and currency
systems and divided authority between local and central
government to give insurance to an investor that the
million or half-million dollars he has put into the deve-
lopment of a Chinese mine, industry or railroad is so
soundly his by virtue of the protection of some govern-
mental authority that he can entirely disregard the
possibility of interference, confiscation or loss. While
such conditions exist American capital will not enter
development work in China in a comprehensive wayand American trade with China cannot grow.
" When a Japanese financial enterprise decides to
put a million dollars into a Chinese steel industry or
a Chinese mine, its sponsors know immediately that
they may rest assured that their Government will see
to it that no Chinese insurrection, riot or local inter-
ference will disturb this industry in the least respect
and the money invested. The very agreement of the
Chinese Government with the Japanese Government
not an agreement between the Chinese Government and
the Japanese private investor but an agreement with
the vise of the Japanese Government guarantees
absolute protection by the Chinese Government."
If the United States Government would take
cognizance with its vise of any contract or agreementmade between American bankers and developers and
the Chinese Government for the development of a mine
or a public utility, I am quite sure that this would
21
guarantee full and undisturbed protection to the enter-
prise through the Chinese Government. There would
be involved no political complications. The Chinese
Government would see to it that every protection was
afforded such enterprise." There is no disposition on the part of American
enterprise to question the potentialities for stable govern-
ment and progress inherent in the Chinese or the desire
of the Chinese to lend assurance to the foreign investor.
The fact remains, however, that the future of his moneyis regarded as an uncertainty by the American investor
under present conidtions. Until this uncertainty is
removed by the authority of our own Government or
if our Government fails to grant this, by the authority
of some other government whose strength has already
been established American trade with China, American
development enterprise in China, cannot advance.
ADVANTAGES TO ALL THREE"Co-operation with Japan, therefore, is a probable
solution of the present question. I repeat that I regard
Japan's attitude as perfectly correct so far as Japan is
concerned. Furthermore, it is to our advantage to join
with Japan. Where I know in business that a com-
petitor of mine is not only determined to get a large
and valuable business which I want also, but is well
fitted to carry out that determination by virtue of the
natural advantages he possesses, by his native ability
and by intelligent leadership, and when that competitor
in this situation comes to me and offers to co-operate
with me in developing this business hand in hand on
an equal basis, using his ability and knowledge and
22
position to match my money, I should gladly enter
such a co-operative arrangement."
I should not enter any such arrangement of co-
operation, however, without the primary object in mind
of developing China for the advantage of China. China,
Japan and the United States should work together.
The United States should enunciate its policy to be one
of willingness to work with Japanese financiers in the
development of China on the sole basis that in all such
enterprises Chinese capital and Chinese participation
should enter to the advantage of China. When I speakof a fifty-fifty arrangement with Japan, I mean a division
between Japan and this country of the share in such
enterprise other than that held by the Chinese. There
can be no real development of China unless the Chinese
participate. It is their country. They know the country.
They have some capital and are willing to invest it.
They are a wonderful people. I should not have
Americans enter into any development work in China
except that which would be to the advantage especially
of the Chinese."
I believe that Japan is sincere, that she wants an
opportunity for trade development, that she does not
want to rule China. I believe that this country should
take Japan at her word and enter into co-operation
with her."
THE FIELD IN CHINA.
An Address by Mr* W F. Carey Before the American
Association of Peking, May JJ*
Mr. W. F. Carey, of the Siems, Carey Company,addressed the American Association of Peking on May12, on the occasion of a dinner given by the association.
Mr. Carey expressed himself as being in harmony with
the objects of the association and said he would alwaysdo his best to co-operate with American business menin whatever way he could for the benefit of all of them.
Although China had a field for investment, they must
be careful to find out what sort of business China could
attract. There was no big field for merchant classes.
To find capital was one of China's biggest problems.China for centuries had done business on a basis which
America could not understand and would not follow.
Business operations had to be clearly defined and must
lead to no uneasiness. American capital was not only
willing but anxious to come to China. Chinese had
great faith in their word, which was not to be gainsaid,
but they were inclined to be a little careless as to
future guarantees. China's word was as good as it
ever was. China had never at any time forfeited her
obligations and her word would always remain good.
(Applause). But matters must be clearly cut and well-
defined before Americans would consent to do business.
He hoped that the visiting American business menwould not leave the country discouraged, but he could
assure them that the political situation would not affect
their enterprises. Increased business was bound in future
to roll across the country. In conclusion, the speaker
paid a handsome tribute to the American Minister, who,he said, had done more than any other man to advance
the interests of Americans and who was at all times
ready to take his coat off for the benefit of his fellow-
citizens. (Applause.)
24
A MANUFACTURER'S VIEW.
Address by Mr. Anson W* Bttrchard Before the
America-Japan Society, May U.
Japanese and American co-operation received
endorsement from a man highly qualified to speak on
this subject, at the inaugural banquet of the America-
Japan Society, held in Tokyo May 11, when Mr.
Anson W. Burchard, executive vice-president of the
General Electric Company, was one of the principal
speakers. Mr. Burchard gave an account of the joint
manufacturing enterprises conducted by the General
Electric Company in Japan, in which, he said, the
co-operation of Americans and Japanese had been
attended with highly satisfactory results.
Mr. Burchard emphasized the importance of
personal contact between the leading men of the
two countries for better understanding and sounder
international relations."Nothing is so effective as
personal contact in promoting understanding, and in
clearing away differences," said Mr. Burchard," and to
that end encouragement of travel between Japan and
America is, I believe, one of the most important direc-
tions in which the influence of this Society can be
exercised." The interest in Japan of American men of
affairs, initiated by the favorable impressions they have
gained from the representative citizens of Japan whom
they have the privilege of meeting in America, is
rapidly growing and has stimulated in them the desire
to familiarize themselves with the institutions, industries
and other features of this country by personal contact
and study. In this connection, the highly patriotic and
disinterested visits to America of that distinguished
Japanese, Baron Shibusawa, constitute a notable ex-
25
ample. It is from this personal acquaintance of the
people of the two countries, thereby bringing about
better understanding, not only of their personal charac-
teristics, but also of their respective political, economic
and sociological problems, that we may look for greatest
forward progress in achieving the aims of this Society."
Mr. Burchard went on to discuss some aspects of
co-operation as a factor in international relations." The
forces made available to mankind through the technical
and scientific development of the past century," he said," have become so powerful that when directed to the
accomplishment of a purpose by antagonistic methods,
they become destructive. The terrible war now raging
in Europe affords the most appalling example of the
consequences of the attempt to achieve an ambition bymethods of strife. And in industry and commerce this
principle applies with equal force : forward progress
must be realized through co-operation, by united effort,
giving consideration to the rights of others, and accept-
ing as a reward a fair participation in the resultant ad-
vance of the entire body of the industrial and
commercial interests concerned."
Mr. Burchard turned last to the more concrete
subject of the working together of Americans and
Japanese in financial and industrial undertakings.
Speaking of the partnership between his own companyand its Japanese associates, he said :
" Such a partnership, whereby, with the adap-
tability, craftmanship, skill and industry of the Japanese,
there has been combined the technical and manufac-
turing experience of the earlier established enterprise
of America, constitutes an example of practical
co-operation.
26
"It will be recognized, without the slightest degree
of disparagement of the notable achievements of the
Japanese in many fields, that the ingenious Americans
turned their attention to the art of the manufacturer with
large centralized units of production at an earlier date
than the Japanese, and it was to be expected that with
the abundance of raw materials in America coal, iron,
copper, cotton, etc. and with the large water poweravailable in the Eastern States of America, where the
people first made manufacturing their principal avoca-
tion, the industries of that country would be established
on a modern basis earlier than in Japan, where their
development according to modern methods began at a
considerably later period." The great opportunity for productive co-operative
effort between the Japanese and the Americans lies
in such a co-ordination of the elements of succesful
industrial development as is illustrated by the ex-
perience which I have attempted to describe. The
field is a broad one, manufacturing, mining, public
utility enterprises, in fact in every example of the
application of modern science and invention to the use
and convenience of mankind. I am confident that the
alert and sagacious Japanese and the resourceful
Americans will not fail to sieze tiiese opportunities."
CHINA'S NATIONAL DEBT.
BY CRAWFORD M. BISHOPFORMERLY UNITED STATES VICE-CONSUL IN CHINA.
The total outstanding indebtedness of the Central
Government of China to-day is approximately
$837,000,000 gold. Of this amount $814,000,000 re-
presents foreign indebtedness. Comparing China with
the United States and Japan, we have :
Country. Population. Debt. Debt.Per Capita.
United States... 95,411,000 $1,026,686,026 $10.76
Japan 52,312,000 1,251,316,800 23.92
China 400,000,000 836,947,410 2.08
During the past year the returns from China's
main sources of taxation have been :
Revenue. Amount in Mexican Administration,dollars.
Salt Revenue $72,440,559 ForeignLand Tax 65,400,000 Native
Native Customs or
Likin 62,000,000 Native
Maratime Customs ... 50,112,000 ForeignThe budget for the Chinese Government for 1917
indicates :
Receipts $ 411,389,356 Mex.
Expenditures 525,897,446
The best evidence of the advantages derived from
foreign administration is shown by a comparison of the
revenues derived from the salt tax when under native as
compared with foreign control. The revenue under native
control, before the reorganization, was $ 16,333,833,
Mex.; the revenue under foreign control, collections of
1916, $72,440,559, Mex.
28
UNIVERSITY OF CALIFORNIA LIBRARY
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